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Keppel Corp unit to develop gasification facility on Jurong Island

KEPPEL Infrastructure Holdings, a division of Keppel Corporation, has signed an agreement with Singapore Economic Development Board (EDB) to develop, own and operate a gasification facility on Jurong Island.

The agreement marks an important step in preparation for the final investment decision which will be taken at a later date, said Keppel.

The facility will use proven and best-in-class technologies to produce hydrogen, carbon monoxide, syngas and other industrial gases from different potential feedstock, including coal and refinery by-products.

The agreement comes ahead of the requirement by the International Maritime Organization for all ships to comply with reduced sulphur emission limit by the start of 2020. As the refineries in Singapore produce low sulphur compliant fuel, there will be increased demand for hydrogen from existing and new customers, Keppel noted in its press release.

Said EDB executive director of energy and chemicals Damian Chan: "After extensive evaluation, we found that gasification would be able to meet industry demand for competitive hydrogen and carbon monoxide, while the use of best-in-class mitigation technologies would minimise its environmental impact."

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The latest announcement will not have any material impact on Keppel's net tangible assets and earnings per share for the current financial year, the firm said.

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